EHS Investments Plans to Nominate Directors at TrueBlue's Annual Meeting for Change
On December 2, 2025, EHS Investments, a prominent shareholder of TrueBlue, Inc. (NYSE: TBI), declared its intention to nominate a new slate of directors for election at the upcoming 2026 Annual Meeting of Shareholders. This decision comes amidst growing concerns over TrueBlue's operational and financial performance, which have worsened over time, prompting calls for significant changes within the Board of Directors.
Eric H. Su, Managing Partner at EHS Investments, emphasized that TrueBlue is currently on a detrimental path, with deteriorating operational performance and a share price nearing historic lows. Given these alarming trends, he asserted that meaningful changes in the Board are imperative. EHS's nominees are expected to provide not only extensive operational experience but also fresh insights and stronger governance, focusing on three key areas: staffing excellence, digital transformation, and disciplined capital allocation. These three pillars are intended to bolster TrueBlue’s commitment to maximizing shareholder value.
In the letter addressed to the Board, Su expressed his deep concern over the company’s sustained underperformance. Despite some positive signs highlighted in the Company’s Q3 earnings report—such as a return to organic revenue growth after a dismal twelve consecutive quarters of decline—he noted that it offers little solace. The reality of TrueBlue’s financial state is sobering; a reported increase in revenue by $49 million compared to the previous year was overshadowed by a $2 million reduction in gross profit.
EHS pointed out a troubling trend where the growth figures were notably inflated due to accounting practices associated with renewable energy projects, which obscured the true underlying performance. When excluding these effects, TrueBlue continues to grapple with organic revenue declines, a reality compounded by the poor performance of its sectors like PeopleSolutions, which reported an alarming -11% year-over-year revenue decrease.
Moreover, TrueBlue has grappled with substantial cash burn, having reported a -$17 million free cash flow in the last quarter and -$40 million year-to-date. Such financial distress raises serious questions about the company's capability to engage in share repurchases in the context of its longstanding undervaluation. EHS highlighted the ill-fated acquisition of Healthcare Staffing Professionals (HSP), which, far from delivering the anticipated growth, has instead significantly underperformed.
The company’s strategic missteps were further illuminated by a recent lawsuit that revealed potential management lapses and a lack of oversight from the Board. Allegations included misallocation of funds in TrueBlue’s Jobstack initiative, which reportedly consumed significantly more resources than initially projected, marking a potential $100 million endeavor without satisfactory outcomes. This glaring oversight exemplifies the ongoing disconnect between the Board's self-evaluated performance and that of the company’s actual operational results.
EHS also expressed discontent over the Board's earlier rejection of an acquisition offer that valued TrueBlue at $12.30 per share, with the stock now languishing at approximately $5—a decline of around 60% since that offer, underscoring a missed opportunity and indicating a troubling lack of oversight from the Board.
In light of these daunting facts, EHS’s commitment to nominating capable directors reflects an urgent call for action to address TrueBlue's challenging position. The nominees will aim to instigate a rigorous reevaluation of the company’s strategic direction and operational framework while ensuring that leadership aligns with shareholder interests.
Despite the difficulties outlined, Su remains optimistic about TrueBlue's foundational potential and its essential role in connecting individuals with work opportunities. He expressed hope that by collaborating with the new directors, the company could pivot towards a brighter and more profitable future, truly prioritizing the needs and expectations of its shareholders. For more information on the developments and EHS's proposed nominees, shareholders and interested parties are encouraged to stay tuned for updates as the 2026 Annual Meeting approaches.
Eric H. Su, Managing Partner at EHS Investments, emphasized that TrueBlue is currently on a detrimental path, with deteriorating operational performance and a share price nearing historic lows. Given these alarming trends, he asserted that meaningful changes in the Board are imperative. EHS's nominees are expected to provide not only extensive operational experience but also fresh insights and stronger governance, focusing on three key areas: staffing excellence, digital transformation, and disciplined capital allocation. These three pillars are intended to bolster TrueBlue’s commitment to maximizing shareholder value.
In the letter addressed to the Board, Su expressed his deep concern over the company’s sustained underperformance. Despite some positive signs highlighted in the Company’s Q3 earnings report—such as a return to organic revenue growth after a dismal twelve consecutive quarters of decline—he noted that it offers little solace. The reality of TrueBlue’s financial state is sobering; a reported increase in revenue by $49 million compared to the previous year was overshadowed by a $2 million reduction in gross profit.
EHS pointed out a troubling trend where the growth figures were notably inflated due to accounting practices associated with renewable energy projects, which obscured the true underlying performance. When excluding these effects, TrueBlue continues to grapple with organic revenue declines, a reality compounded by the poor performance of its sectors like PeopleSolutions, which reported an alarming -11% year-over-year revenue decrease.
Moreover, TrueBlue has grappled with substantial cash burn, having reported a -$17 million free cash flow in the last quarter and -$40 million year-to-date. Such financial distress raises serious questions about the company's capability to engage in share repurchases in the context of its longstanding undervaluation. EHS highlighted the ill-fated acquisition of Healthcare Staffing Professionals (HSP), which, far from delivering the anticipated growth, has instead significantly underperformed.
The company’s strategic missteps were further illuminated by a recent lawsuit that revealed potential management lapses and a lack of oversight from the Board. Allegations included misallocation of funds in TrueBlue’s Jobstack initiative, which reportedly consumed significantly more resources than initially projected, marking a potential $100 million endeavor without satisfactory outcomes. This glaring oversight exemplifies the ongoing disconnect between the Board's self-evaluated performance and that of the company’s actual operational results.
EHS also expressed discontent over the Board's earlier rejection of an acquisition offer that valued TrueBlue at $12.30 per share, with the stock now languishing at approximately $5—a decline of around 60% since that offer, underscoring a missed opportunity and indicating a troubling lack of oversight from the Board.
In light of these daunting facts, EHS’s commitment to nominating capable directors reflects an urgent call for action to address TrueBlue's challenging position. The nominees will aim to instigate a rigorous reevaluation of the company’s strategic direction and operational framework while ensuring that leadership aligns with shareholder interests.
Despite the difficulties outlined, Su remains optimistic about TrueBlue's foundational potential and its essential role in connecting individuals with work opportunities. He expressed hope that by collaborating with the new directors, the company could pivot towards a brighter and more profitable future, truly prioritizing the needs and expectations of its shareholders. For more information on the developments and EHS's proposed nominees, shareholders and interested parties are encouraged to stay tuned for updates as the 2026 Annual Meeting approaches.
Topics Financial Services & Investing）
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